Debt investors

Kingfisher finances its operations using a number of funding instruments, including medium term note debt, bank borrowings and leases.

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayments of debt at its maturity and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or unexpected impacts to cash inflows (arising from, for example, COVID-related temporary store closures).

As a result of the Group’s strong cash position, the Group ended the period with £1.4 billion (2019/20: £2.5 billion) of net debt on its balance sheet including £2.4 billion (2019/20: £2.6 billion) of total lease liabilities. The ratio of the Group’s net debt to EBITDA was 0.9 times as of 31 January 2021 (2.0 times as of 31 January 2020). At this level, the Group has the necessary financial flexibility during this current period of heightened uncertainty, whilst retaining an efficient cost of capital. Over the medium term, the Group’s objective is to maintain a target of c.2.0 times net debt to EBITDA.

Net debt to EBITDA is set out below:

  2020/21
£m
2019/20
£m

Retail profit

1,003

786

Central costs

(54)

(62)

Depreciation and amortisation

536

545

EBITDA

1,485

1,269

Net debt

1,394

2,526

Net debt to EBITDA

0.9

2.0

Kingfisher holds a BBB credit rating with Fitch, (P) Baa2 rating with Moody’s, and a BBB rating with Standard and Poor’s.

For any questions or queries please contact:

Bridget Scheuber
Head of Treasury
Bridget.Scheuber@kingfisher.com

Maj Nazir
Group Investor Relations Director
Maj.Nazir@kingfisher.com

Kingfisher Investor Relations
investorenquiries@kingfisher.com